Total petroleum revenue hits highest for first time in 2022 – PIAC

The total revenue from petroleum products recorded its highest for a single year since the beginning of petroleum production in Ghana.

Ghana made $1.43 billion from petroleum production in 2022 alone, due to happenings on the international market as a result of the Russia-Ukraine conflict.

This was contained in the Public Interest and Accountability Committee (PIAC)’s 2022 annual report, launched on April 20, 2022.

“Crude oil production has been declining for three consecutive years. A volume of 71,439,585 barrels was produced in 2019, but declined to 66,926,806 barrels in 2020, representing 6.32 percent.

It further declined to 55,050,391 barrels in 2021 (17.75%) and then to 51,756,481 barrels in 2022 (5.98%). The average decline over the three-year period stood at 10 percent. Total petroleum revenue in 2022 is the highest for a single year since the inception of petroleum production in Ghana with a figure of US$1.43 billion,” parts of the report noted.

The 2022 Annual Report covers the period January to December 2022 and encompasses a broad range of issues relating to petroleum revenue management such as information on production, liftings, total revenues accruing and allocation by the Government, ABFA utilization, and the management of the funds set aside in the Ghana Petroleum Funds (Ghana Stabilisation Fund and the Ghana Heritage Fund).

The report also stated that surface Rental Arrears continue to rise. It increased from US$2.58 million in 2021 to US$2.77 million in 2022, 65 percent (US$1.80 million) of which is owned by four (4) contractors whose Petroleum Agreements were terminated in 2021. Efforts made by the Ghana Revenue Authority to retrieve the arrears are yet to yield the desired results.

It added, “For two consecutive years (2021 – 1.74% and 2022 - 2.39%), the Ministry of Finance has not been able to meet the requirement to transfer five (5) percent of the ABFA to the District Assembly Common Fund, contrary to the decision of the Supreme Court of Ghana in the case of Kpodo and Another vs Attorney-General in 2019.”

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